Marvin and Smith's Coffee Shop Business Plan

This assignment is about Marvin and Smith's coffee shop wanting to expand their business by opening a branch in another country. They conduct research on Germany as a potential location and analyze the market through a human resource team and marketing department. The company assesses its current situation using profitability and liquidity ratios, indicating good conditions for expansion.

BUSINESS ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................3
Question 1........................................................................................................................................4
Question 2........................................................................................................................................5
Question 3........................................................................................................................................7
Question 4........................................................................................................................................8
Question 5......................................................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCE:................................................................................................................................11

INTRODUCTION
Business essential is classification of business scope, evaluation and business nature.
Essential analysis business objective, work and employee skill, practician and effective
communication. Coffee shop is part of cafe, that will be serve there customer coffee and coffee
related other drink. In other drink include alcohol, iced tea, juices, and light snacks. Report will
be analyse Marvin and smith open a coffee shop in European union for making profit and now
they want to extant there coffee shop in other country. So they make a marketing research for
identify customer need and demand. For the market analysis Marvin and smith make a marketing
mix relation. Marvin and smith identify potential challenges for developing businesses and
interlink business and management.
Question 1
Marvin and smith want to expand there coffee shop in the Germany. So that they make
initial research before stablish there coffee shop in the Germany. In research they want to
identify costumers demand, testy geographic area, structure and target customer or language
issue etc. condition they want to analyse.
In research Marvin and smith identity Germany is good country for stablish new coffee
shop. For the research they decided some parameter for making plan and strategy.
Target customer: in that they want to make a research customer chesses and decided customer
target. In the customer target Marvin and smith target youngster and teenagers.
Brand: in that the Marvin and smith want to analyse customer preference brand. Select that
customer that are loyal for ether brand. In market brand use according to customer that will be
make s successful business(Ragas, and Culp, 2014.).
Legal rule: in that Marvin and smith need permission of registration office for establishing there
coffee shop. They have to obtain law rules and regulation and acquirement of legal document. In
this they have to also consider there coffee shoe location, and what types of product they will
serve there customer.
After that research Marvin and smith decide expand there coffee shop in the Germany. In the
Germany coffee shop are not more so they have to option to stablish and run for long term,

because in that market no more competitor. For stablish new coffee shop in the Germany market
that time they have no face no more legal activity and issue for establishing business. Because
according to Germany law and regulation new stablish business have registered and submit there
document, not fellow a large and complex process.
In Germany market Marvin and smith have many chip suppliers for supply product and
services. According to requirement of coffee shop product. For start new coffee shop marvin and
smith need employee, or give training for develop there employee skill and knowledge. In
Germany employment are not mere so they have to easy to hire employee for there coffee shop
and that employee know customer testy and need and what expectation from coffee shop. In the
Germany they find selected brand and product, because Germany people are very loyal for there
brand so Marvin and smith easy to use branded product according to customer need(Wilson,
2014).
Location selection for the new coffee shop in Germany that will be easy for marvin and
smith. Because in the Germany market not more coffee shop. So expand new coffee shop in
Germany is the best place, for Marvin and smith.
Question 2
Marketing mix : combination of that factor whose effected on influence customer to buy there
product and services. It reefer that activity use by the company to promote there product and
services. Marketing mix element help to develop company planing and strategy or improve
company position. Marking mix is the tool that help organisation to achieve target and complete
objective. Marvin and smith have coffee shop and now they plan to expand there coffee shop in
Germany. For successful stablish there new coffee shop branch and run log term in Germany
market so Marvin and smith use marking mix strategy for making strategy plan and taking
business decision. Marvin and smith use three making strategy for expansion planing of coffee
shop in Germany(Major, 2015.).
Product:
product refer facility and services that satisfies customer need and requirement. In the
product brand, design, quality, pecking, labelling and product range. In coffee shop product will
be refer deliver services quality, quantity and employee performance level. In product marvin
and smith divide there services tangible and intangible goods and services. marvin and smith

provide tangible services like coffee, fast food, snakes and alcohol according to customer
demand. Marvin and smith want to provide good tangible services. Because good tangible
services play a main role for business improvement. Intangible products are defined marvin and
smith coffee shop design and services or environment. For the customer attraction marvin and
smith provide better tangible and intangible services. Better product services increases selling
and develop people attraction for using Marvin and smith coffee shop services, that will be help
to archive objective or improve business strategy.
Price:
pricing is that is pay a amount for using product services. Pricing is that variable for help
to improving company revenue and profit. Marvin and smith make pricing strategy for customer
attraction and analysing market condition, or competitor action. Marvin and smith use several
pricing strategy :
premium pricing:
in the premium pricing the company will decide price according to competitor pricing. It
means company set product price higher than there competitor. Now days it will be effected on
product life cycle.
economic pricing:
big range business suppliers provide there customer lower price, product offer and other
strategy. Mostly this strategy will be effect large level companies sales.
penetration pricing:
penetration pricing method attract customer to offer lower price goods and services. New
stablish company use this strategy for there product promotion and improve seals. Marvin and
smith use this services for develop there coffee shop and attend customer attraction. When
Marvin and smith use the lowest price there customer that time the customer will be attract and it
will be improve seal
skimming strategy:
it will be design to help maximise sales product and service. Skimming price include high
rate introductory time.

Unique selling proposition:
USP is that factor show maser difference between the product from competitor. Such as
a lowest cost at hight quality product(Campbell, Martin, and Fabos, 2018). In USP Marvin and
smith identify target audience problem , and invite for using there services, describe benefit for
using there services. USP help marvin and smith for stablish new coffee shop to cover all market
and attract customer.
Place:
it will be refer the location and point of sales. Marvin and smith select location and
country for expand there business according to place strategy. The place the process of moving
product to product and procurer to invite customer. Marvin and smith decide place near of any
public place yea any popular place that will be conferable for customer for using there services
and it will be help to improve sales.
Promotion:
Marvin and smith use this factory to make popular there coffee shop in Germany. So
they use different types of promotion straggly, for the promotion marvin and smith use
advertising, award, incentive, attractive offer, word of mouth public relation, and marking
communication budge(human resource management. 2014. )t.
Question 3
Human resource management:
human resource management define different strategy and approach for develop,
acquiring, managing and motivation for organisation employee and company. The human
resource concerned recruitment, maintaining, and motivation. Marvin and smith make a team of
human resource management for the make plan develop there organisation, give direction for
improve productivity, control company (expansesAnderson,et.al. 2014). The human resource
department make to rule and regulation for the managing coffee shop activity. Human resource
team hire employee for the Marvin and smith coffee shop and mange three work or achieve
customer satisfaction.
The human resource team provide employee training for making better working
environment and complete work without any issue and problem. For employee motivation the

Marvin and smith and there human resource team provide appraisal, incentive and other extra
benefit. Human resource team and Marvin and smith work for coffee shop improvement. The
team maintain coffee shop turn over and sustaining the best performance of coffee shop worker.
The human resource team try to make good relation between the labours and coffee shop.
The human resource team make new strategy for the improving coffee shop productivity
and making better customer services. For the employee development. the company provide there
employee training in a short time period so the employee learn about improving working
capacity. The human resource hire employee whose help to expand coffee shop n the Germany.
The human source team planed development of employee because of when employee are
developed there skill and ability so they work good and make a healthy working environment.
the human resource team also work employee and company welfare that will be improve Marvin
and smith's coffee shop. Human resource department is identified employee and company
demand and expectation what they want. So they make plan and strategy.
Marketing:
Marketing is the process of making strategy and planned for develop Marvin and smith's
coffee shop in Germany. The marketing team identify the customer requirement and provide data
company for improve there services according to market need. Marketing department help
Marvin and smith to make profit, improve there coffee shop sales and beat there competitors.
The marketing team work to improve production for the consumer favour and improving
company production. The marketing team provide information about new technology and
competitor strategy. Marvin and smith want to analyse customer testy and about there coffee
shop services are satisfied or note. The(Ulrich, Brockbank, and Yeung, 2016. ).production will
be show the consumer are like there product and the product will be cover market.
Marketing team member convene people for try there services and use. Coffee shop
development the marking team make interesting advertisement, personally try to convince
consumer. The selling concept required attention for identify consumer demand. Marking team
use types of strategy for attracting consumer in that they offer coupon, award, membership etc
attractive offer for invite consumer to use there coffee shop services. Marking team work only
for the Marvin and smith's coffee shop promotion and development(Al Nimer, Warrad, and
Omari, 2015.).

Question 4
Profitability ratio:
gross margin ratio:
Gross profit 2,08,000
Net sales 3,60,000
gross margin ratio ( formula) Gross profit / net sales*100
Total 208000/36000*100
ratio 5.77%
Operation margin:
gross profit 2,08,000
expenses 2,08,000
net sales 26800
Operation margin ( formula) operation profit / net sales*100
operation profit ( formula) gross profit - expenses
Total / operation profit
( formula)
2,08,000 -2,08,000 = 26800
Total of operation margin 26800 / 26800 *100
Ratio 7.44%
Liquidity ratio
Current ratio :

Current assets 35400
Short term loan(Current liability) 100000
Current liability 6200 +100000
Current ratio ( formula) Current assets / Current liability
total 35400 / 106200
ratio .33%
Acid test ratio / quick ratio :
Current assets 35400
inventory 8000
Short term loan ( current liability) 100000
Current liability 6200
Acid test ratio ( formula) Current assets – inventory / current liability
total 35400-8000 / 106200
Ratio .25 %
In profitability ratio we calculate gross margin ratio and operation margin ratio. In the
gross margin ratio is the 5.77% operation margin ratio is 7.44%. is defined company managerial
profit is low according to operational marginal profit. This ratio will also measure segment profit
are low. the operation margin ratio describe the production and product are different. Production
and product cost are unrelated to the direct production cost(Al Nimer, Warrad, and Omari,
2016.).
In liquidity ratio will be effect the company and company credit rating. For the
calculation we use current ratio and Acid test ratio / quick ratio. Current ratio is .33% and acid
test ratio is .25%. current ratio will be describe financial strength of the company. According to

that ratio coffee shop current situation is good. Acid test ratio will be describe company liquidity.
It will be measure company have no liquid. That means company control there expenses.
According to profitability ratio and liquidity ratio company condition are good. So the
company want expansion that is good for the company. The coffee shop expand that time the
company use penetration pricing strategy for the company development. Because the company
condition is good for profit making(Raabe, .et.el. 2015). The company has no more liability and
other expenses. If the company expand there business that is right decision.
Marvin and smith expansion plan are good. There company have profit making company
so they have no issue for the expansion. But the company want to earn more profit than the
company have control there extra express. Because the company make extra expenses is more so
the profit ratio will be down. At the expansion time the company use promotion strategy for
development. Before the expansion Marvin and smith make research for identify about customer
need and expectation. The Marvin and smiths expand ether coffee shop in Germany that have
many options for develop there business(Legge, 2014.).
Question 5
Concluding overall viability of overseas expansion stage :
According to all report if Marvin and smith want to expand there business that is good. In
all report Marvin and smith work is good and company performance also good. The company
have use different strategy for develop there coffee shop. Marvin and smith's use promotion
businesses strategy for business promotion. The company use in price penetration pricing
strategy, in this strategy price will low and high according to competitor strategy. The company
make research in Germany and other country for decide the best country for there coffee shop. In
that research Marvin and smith's find Germany is good for there coffee shop. So they have to
expand there business in Germany(business essential. 2014),
Before expansion Marvin and smith's make two team for employee training and
development and analysing market strategy. Marvin and smith's hire human resource team and
marketing team. These team are work for development. The human resource team work find
location, hiring employee and providing training. The marketing department work promotion of
coffee shop, improve sale and provide innovation for company development. According to
profitability ratio and liquidity ratio will be help to identify company current situation that will

be show company current situation is good and if company want to use expansion strategy that
will be good for the Marvin and smith's coffee shop.
CONCLUSION
From the above study it has been summarised that Marvin and smith's want to open a
coffee shop branch in other country so they make research and analyses Germany is good
country for there coffee shop. Marvin and smith's make human resource and marketing team for
the analysing market and make a strategy plan for coffee shop development. In all study Marvin
and smith's company condition is good. But they analyse for the coffee shop condition calculate
profitably ratio and liquidity ratio. At the last company condition is good so Marvin and smith's
espand there business

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Online Reference:
business essential. 2014. [online] Available through <
https://www.taylorfrancis.com/books/9781351890571>
human resource management. 2014. [online] Available through
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